Bitcoin Inflows Signal Positive Outlook with Price Targets at $56,000 and $58,000

Bitcoin’s recent price movements have left many wondering whether the cryptocurrency is at its bottom or if further declines are on the horizon. Analyst Josh from Crypto World delved into Bitcoin charts and noted minimal changes over the past day.

Upon analyzing the daily Bitcoin chart, it was observed that the price is undergoing a brief rebound from the support range of $60,000 to $61,000, which was recently tested at a local low. A break below $60,000 could lead to the next key support zone between $56,500 and $58,000.

The daily Bitcoin Relative Strength Index (RSI) has entered oversold territory for the first time in months, historically indicating that the price may have reached or is nearing a local low. This situation hints at a potential short-term rebound or sideways consolidation.

In terms of resistance levels and potential relief from the bearish trend, a shift away from bearish price action or momentum could result in erratic sideways movement or a bullish upturn towards resistance levels at $63,000 to $64,000, and potentially $67,000 to $68,000, with a significant barrier at $72,000 to $74,000.

To turn more optimistic in the short run, breakouts above crucial resistance levels like $64,000 and preferably $68,000, alongside a reversal in the bearish trend of the DXY, are necessary. Without these signals, the market is likely to remain in a short-term bearish phase. Nonetheless, a slight reprieve from this trend is anticipated in the near future, possibly within the next few days to a week.

Addressing positive developments, the analyst highlighted a noteworthy shift in Bitcoin ETF flows on Tuesday. Following weeks of consistent net outflows, there was finally a net inflow, albeit modest at around $31 million. This reversal from outflows to inflows, if sustained, could have a bullish impact on Bitcoin’s trajectory.